Electricity Ancillary Services Market Report Overview
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The global electricity ancillary services market size was USD 8810 million in 2022 and market is projected to touch USD 18088.2 million by 2031, at a CAGR of 8.3% from 2022 to 2031.
Services that assist grid operators in keeping a dependable power system in place are referred to as electricity auxiliary services. Ancillary services ensure the right direction and flow of electricity, deal with supply and demand imbalances, and aid in the system's recovery following a power system event. Additional auxiliary services may be needed in systems with a sizable variable renewable energy (RE) penetration to manage the increased fluctuation and uncertainty. The extensive range of electrical efficiency and safety nets that make up electricity auxiliary services all work to keep the power system stable while delivering enough output to fulfil demand.
The rise of the energy retailing business is mostly being driven by the increasing popularity of EVS, while some obstacles, such as the state-owned monopoly power supply network in emerging nations, could restrain market expansion. Get your FREE study sample now to learn more about the COVID-19 pandemic's effects on the power retailing business and the key market drivers. The popularity of electric vehicles has increased as a result of factors like growing public awareness of pollution and climate change, as well as rigorous government regulations relating to dangerous vehicle emissions (EVs).
COVID-19 Impact: Supportive of Government Policies to Help Market Grow
The need for energy retailing in industrial applications will increase as a result of strict rules enforced to minimize carbon emissions, the growing adoption of renewable sources for electricity generation, and supportive of government policies. However, the post COVID-19 impact has caused the industrial sector to stall considerable. Regulation on market design and procurement mechanisms, policy framework for ancillary service provision, regulation on tariffs for power procurement aspects, price pooling and affordability, distribution generation sources are important resources for various types of ancillary services, free governor mode operation can be a mechanism to provide frequency controlled ancillary service, and promoting energy storage solutions are all important areas that need regulation.
Latest Trends
"Reduced Costs to Propel Market Growth"
Frequency control ancillary services (FCAS) markets offer features that may reduce costs and facilitate the integration of larger quantities of variable renewables. Such as wind and solar photovoltaics. It plays a very critical part in maintaining the frequency throughout the system at something very close to 60 Hertz. The demand for frequency control services is likely to rise as the demand to maintain frequency and ensure the stability and reliability of the grid is increasing.
Electricity Ancillary Services Market Segmentation
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- By Type Analysis
According to type, the market can be segmented into frequency control, reactive power & voltage control, black start, operating reserve, load following, others.
In terms of product, frequency control is the largest segment.
- By Application Analysis
Based on application, the market can be divided into industrial electricity and residential electricity.
In terms of application, residential electricity is the largest segment.
Driving Factors
"Rising Need for More Electricity to Augment Market Growth"
Electricity is utilized in the industrial sector to run office equipment, lighting, computers, and industrial motors and machinery. Additionally, tools for ventilation, heating, and air conditioning in buildings. In addition, a wide variety of manufacturing processes demand enormous quantities of electricity to run. Industrial electricity often has a 3-phase configuration and an amperage need. The voltages entering an industrial plant can reach thousands of volts, and it can be extremely large. The need for more electricity to run the machinery and equipment in the industrial setting has resulted in the greater voltage need. Large plants typically receive power from on-site power plants. It permits wire workload while making sure that all components cooperate to produce a larger power output.
"Advancement Of Digital Technologies to Enhance Market Sales"
The advancement of digital technologies has also aided retailers of energy and water in enhancing customer involvement. End-user acceptance of smart meter infrastructure, regionalized energy production, and generation of electricity from renewable energy sources is rising. New business models are being adopted by companies, such as the combination of customer-sited generation with energy storage. One of the key trends in the electricity ancillary services market growth that is gaining popularity is technological advancements and innovations among market competitors. The selling of energy is witnessing a number of technological advancements and breakthroughs.
Restraining Factors
"Stranded generation capacity to Impede Market Expansion"
The different causes of stranded generation capacity include inadequate evacuation infrastructure, the switch from natural to surge impedance loading methodology, distributed firms' inability to afford pricey power, and a lack of finance for the procurement of necessary capacities. In order to decrease power outages across the nation, all feasible generation capacities should be mainstreamed. Variations in the amount of renewable energy entering the system.
Electricity Ancillary Services Market Regional Insights
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"Asia Pacific to Dominate the Market Due to Growing Demand-Supply"
The largest portion of worldwide sales came from the Asia Pacific area. The growing demand-supply mismatch and rising investment in storage projects are expected to cause the region to see significant growth over the course of the projection period. Grid-scale electricity storage systems are anticipated to be driven by increasing renewable integration, particularly solar PV and wind generation, across Asia Pacific nations. Due to early adoption by various companies, Asia Pacific accounted for the biggest electricity ancillary services market share.
Key Industry Players
"Key Players Focus on Partnerships to Gain a Competitive Advantage "
Prominent market players of electricity ancillary services are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.
List of Market Players Profiled
- PJM (U.S.)
- ERCOT (U.S.)
- CAISO (U.S.)
- ISO-NE (U.K.)
- Elia (Belgian)
- NYISO (U.S.)
- Energinet (Denmark)
- Snowy Hydro (Australia)
Report Coverage
This research profiles a report on electricity ancillary services with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, etc. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.
REPORT COVERAGE | DETAILS |
---|---|
Market Size Value In |
US$ 8810 Million in 2022 |
Market Size Value By |
US$ 18088.2 Million by 2031 |
Growth Rate |
CAGR of 8.3% from 2022 to 2031 |
Forecast Period |
2024-2031 |
Base Year |
2023 |
Historical Data Available |
Yes |
Segments Covered |
Type and Application |
Regional Scope |
Global |
Frequently Asked Questions
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What value is the global electricity ancillary services market expected to touch by 202831?
The global electricity ancillary services market is expected to touch USD 18088.2 million by 2031.
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What CAGR is the electricity ancillary services market expected to exhibit during 2022-2031?
The electricity ancillary services market is expected to exhibit a CAGR of 8.3% over 2022-2031.
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Which are the driving factors of the electricity ancillary services market?
Rising need for more electricity and advancement of digital technologies are the driving factors of the electricity ancillary services market.
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Which are the top companies operating in the electricity ancillary services market?
ABB Group, Fluence Energy, LG Chem Ltd., NGK Insulators Ltd., BYD Co. Ltd., Hitachi Ltd., Mitsubishi Electric Corp., Samsung SDI Co. Ltd., Panasonic Corp., GS Yuasa Corp., General Electric, Sumitomo Electric Industries, Ltd. are the top companies operating in the electricity ancillary services market.